Free Cash Flows Rhodes Corporation's financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes Less interest Pre-tax income Taxes (25%) Net income available to common stockholders Assets Cash Short-term investments Accounts receivable Inventories Total current assets 736 184 728 182 $ 552 $ 546 Common dividends $ 204 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings 2020 $12,000 10,644 360 Total common equity $ 996 260 $ $ 450 110 2,750 1,450 $4,760 3,850 $8,610 $ 900 450 368 $1,718 900 2019 $10,000 8,762 310 $2,618 4,944 1,048 $ 928 200 $ $400 100 2,500 1,400 $4,400 3,500 $7,900 $ 800 400 200 $1,400 800 2,200 5,000 700 $5,992 Total liabilities and equity $8,610 Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 milion should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. 825 million $ b. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. 2020: $ 3400 million $5,700 $7,900 d. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number. $ 2300 million What is the ROIC for 2020? Round your answer to two decimal places. 10.9% 1. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. After-tax interest payment $ 210.0 million $ -190 million $ 202 million 22 million 230 million Reduction (increase) in debt Payment of dividends Repurchase (Issue) stock Purchase (Sale) of short-term investments $ $
